The owner of a series of websites that purport to either be hedge funds or raise capital for hedge funds has been arrested and charged with fraud.

Stephen Colangelo, Jr. was arrested at his home in Congers, New York on Monday morning. He has been charged with engaging in two separate schemes that defrauded investors out of more than $2.7 million. According to the FBI, Colangelo’s first scheme involved a hedge fund he controlled called the Brickell Fund, and his second scheme involved three companies he created and controlled called Hedge Community, Start A Hedge Fund, and Under the Radar SEO.

According the FBI, Colangelo misled investors in the course of both of these schemes by making numerous false statements and representations, which included issuing fraudulent performance statements, private placement memoranda, and other business documents.

Additionally, Colangelo registered dozens of websites with URLs such as bloombergresources.com, atlantisadministration.com, thegreenenergyfund.com, transparencyfund.com, tridenttradingpartners.com and more. He also placed logos of well known media outlets on his website, startahedgefund.com, in an attempt to make his business look legitimate.

Manhattan U.S. Attorney Preet Bharara stated, “As alleged, Stephen Colangelo held himself out to be an investment manager who lured in clients to funds that he used as vehicles for stealing millions of dollars of investor money. Alleged schemes like Colangelo’s are all too familiar, and we will continue to prosecute those who defraud their investors.”

Colangelo, 45, is charged with two counts of securities fraud and two counts of wire fraud. The securities fraud and wire fraud charges each carry a maximum term of 20 years in prison.

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